NY man's $1.5M bank fraud scheme targeted Michigan victims

A New York man accused of leading a multi-state check fraud scheme has pleaded guilty to charges in a Detroit federal court, officials said.

Nazaly Mason Smith, 33, entered a guilty plea to conspiracy to commit bank fraud on Thursday, U.S. Attorney for the Eastern District of Michigan Jerome Gorgon said in a statement.

A date for his sentencing has yet to be scheduled. Smith faces up to 30 years in prison without the possibility of parole, a fine of up to $1 million, and up to five years of supervised release following his imprisonment, according to Gorgon.

Smith's attorney, Michael Rataj, was not immediately available for comment on Friday.

Authorities said Smith admitted to leading a check fraud conspiracy in which he provided subordinates with fake identification documents and the stolen personal information of several victims.

He allegedly trained his subordinates to memorize the victims' personal information, open accounts in the victims' names at bank branches in Wayne and Oakland counties, and fraudulently deposit stolen checks in them.

The scheme operated from May 2022 through December 2023 and netted Smith more than $1.5 million, according to federal officials and court documents.

Smith and his co-defendants were indicted by a federal grand jury in February 2025, according to court records. Officers with the U.S. Department of Homeland Security, TSA Investigations, and the U.S. Postal Inspection Service investigated the allegations.

Smith's case is the most recent in Michigan involving fraud.

Last week, a Detroit man accused of bilking the government out of millions in federal student aid pleaded guilty to wire fraud and aggravated identity theft.

Last month, a Southfield woman accused of stealing $1.2 million in COVID-19 relief loans along with her husband pleaded guilty to federal charges.

Also in April, a Detroit man accused of a credit card fraud scheme pleaded guilty to federal charges.